GameStop Profit Up 24%
GameStop reported quarterly earnings on Friday for the most recent quarter that ended May 3. The video game behemoth based in Grapevine, Texas enjoyed a good quarter with revenue of $2 billion, which was 7% higher compared to $1.87 billion from the same period one year ago.
Profit for the three-month period was just over $68 million, a 24.5% increase compared to the same period last year when earnings were $54.6 million.
Strong sales worldwide of the PlayStation 4 and Xbox One were the biggest driver in the performance of GameStop during the quarter.
The new hardware sector for the company surged by 81% compared to the same period one year ago. In addition, the video game retailer said that the combined sales of the PS4 and Xbox One in the United States between November and April were over double that of the sales of PS3 and Xbox 360 over the same time, which is good news for the company.
The digital business for GameStop also increased during the three-month period, rising by 9.5% thanks in part to the digital items for PS4 and Xbox One and substantial sale of PCs internationally.
GameStop’s mobile electronics segment also increased by 100% compared to last year thanks to the revenue generated from the company’s new offshoot brands Simply Mac and Spring Mobile.
However, not all the news was good for the company. Sales of new software were down by over 20% because of fewer triple A titles being launched during the quarter compared to those of last year during the same reporting period.
Despite the shrinkage in sale of new software, pre-owned business at GameStop was up by 5.3% compared to last year. This increase is attributed to gamers going to the company to trade in hardware to upgrade to a newer console.
Fortunes at GameStop will only improved during the upcoming quarter and into the complete year, said the company. For the upcoming quarter, GameStop is expecting sales from comparable stores to be up 12% to 19% over the same period one year ago.
The full year sales the company is expecting to grow from between 6% and 12%.